Court Allows Genesis to Pay $1.3 Billion for Grayscale’s GBTC Share

A bankruptcy judge will allow Genesis Global Holdco to liquidate about $1.3 billion in Grayscale Bitcoin Trust (GBTC) shares as part of an effort to repay investors.

In a February 14 hearing in the US District Court for the Southern District of New York, conducted via Zoom, Judge Sean Lane approved an order allowing Genesis to sell part of its investment in Grayscale. According to documents filed in court in February, Genesis had stock of GBTC, Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG) worth about $1.6 billion.

As part of its bankruptcy filing, Genesis said it owns approximately 35 million shares of GBTC and 11 million shares of ETHE and ETCG. February 9 gray color he submitted limited objection to the plan of liquidation of the trust property, saying that the sale was “subject to written consent” from an investment company, but he didn’t intend to “to delay, hinder, or prevent the sale or transfer of the Debtors’ trust property.”

On January 10, the US Securities and Exchange Commission (SEC) approved the conversion of Grayscale’s GBTC to a Bitcoin exchange-traded fund (BTC) listing and trading location on US exchanges, as well as offerings from 10 other asset managers. Genesis said the SEC’s approval would enable the redemption of shares for cash.

The beginning was announced on January 31 21 million dollar contract and the SEC for its alleged role in issuing and selling unregistered securities through the Gemini Earn program. The company is a separate entity from Genesis Global Trading, which in January face enforcement action da parte del Department of Financial Services in New York.